May 9 (Bloomberg) -- Credit Suisse Group AG’s top officials
told investors that Switzerland’s second-biggest bank is pushing
to resolve the U.S. probe into whether it helped American
clients evade taxes.

“The resolution of the tax dispute is one of the most
pressing issues currently facing Credit Suisse,” Chairman Urs
Rohner said at the annual shareholder meeting in Zurich today.
“We are doing everything we can to resolve this matter within
the given framework of U.S. and Swiss law in the best possible
way and in a timely manner.”

The U.S., which has been investigating Credit Suisse for
more than three years, is pressing for a guilty plea from the
parent company, a person familiar with the negotiations said
this week. Such an action against Credit Suisse could alarm
customers and other firms that do business with it, lawyers have
said. The bank may also face a penalty of as much as $1.6
billion, another person familiar with the matter said.

“We do not dispute that some foreign clients, including
U.S. clients, used Swiss banking confidentiality in order to
deposit undeclared assets in Switzerland,” said Rohner, 54.
“To the extent that errors were made by the bank, it has to
assume responsibility.”

Rohner said the Department of Justice investigations are
continuing and that he cannot comment on the details.

‘Manageable Outcome’

Chief Executive Officer Brady Dougan told shareholders the
bank is working “hard” toward a resolution, though the outcome
and timing remain uncertain.

“The sooner we can get to a resolution and eliminate the
uncertainty on this, the better,” said Dougan, 54. “At this
time, we are focused on achieving a manageable outcome and
putting this issue behind us.”

Shareholders backed the firm’s compensation report in a
non-binding vote today, with about 81 percent support, though
some investors criticized rising pay at the company. Investors
also approved a change in Credit Suisse’s articles of
association to allow binding votes on compensation in the
future, in line with changes is Swiss law.

“It is shocking that management compensation has been
increasing ever more for two consecutive years,” said Dominique
Biedermann, the CEO of Ethos, a foundation that advises
institutional investors on governance.

Dougan Pay

Credit Suisse raised Dougan’s pay by 26 percent last year
after the bank missed targets it set for profitability and costs
as a proportion of income for the year.

“Total compensation has been reduced massively over the
past years,” Rohner said, responding to shareholder criticism.
“I know that in our industry compensation to some extent
remains very high.”

Ethos counsels institutions that collectively control 3
percent of Credit Suisse’s capital, and is the biggest
shareholder adviser in Switzerland, Biedermann said.

Shareholders narrowly approved Credit Suisse’s proposal to
increase conditional capital that could be used to issue new
shares as part of employee compensation. The proposal got 67.7
percent support, and needed at least 66.7 percent to pass.